Despite popular belief and the barrage of negative media reports, the luxury housing market remains strong. The wealthy are rather unaffected by the housing slump as they are less concerned with mortgage and interest rate issues.
Negative media reports surrounding the condition of the economy and overall housing market have today’s luxury consumers putting away their credit cards. This calls for adaptive marketing tactics from those in the home and building channel to boost consumer confidence. Focusing on ‘real’ value is more important than ever in the high-end home and building products market.
Below are five key marketing tactics essential to maintaining a luxury brand in today’s economy.
1. Employ relevant advertisements
The key word here is relevant. Design ads with the consumer in mind. Tell a story that resonates with the target audience. Advertising is crucial to enhanced brand awareness and also allows consumers to connect with your product on a more personal level.
2. Evolve the brand
The luxury brands that have succeeded for decades are constantly re-inventing themselves. Take Burberry, Cadillac and Chanel, for example. To appeal to luxury consumers, it’s not just about price point or brand name, but how the product fits into consumers’ ever-evolving lifestyles. High-end consumers will pay a higher price for any number of benefits, but it’s all about appealing to their expansive lifestyle views that allows the brand to adapt to change and style preferences.
3. Know what makes consumers buy
Price/value relationship, product and brand reputation, and store/dealer reputation are essential in creating and maintaining a luxury brand. Additionally, word-of-mouth, articles and reviews in magazines and newspapers, the Internet and the overall impression and ease of use of the company’s Web site are key influencers.
4. Develop a strong brand relationship with consumers
Consumers must feel connected to the brand itself. A generic prescription drug may work better than a name brand, but if it’s relatively unknown throughout the marketplace, consumers will purchase one that they may have a pre-established relationship with. Having a consumer connection via customer testimonials, strong media reviews and a user-friendly Web site will enhance the relationship among the brand and the luxury consumers it targets.
In addition to marketing directly to consumers, don’t forget about marketing to home builders.
5. Balance performance and the way the product makes the consumer experience luxury
Every consumer experiences luxury differently. There must be equilibrium between uniqueness and exclusivity. The bulk of luxury consumers do not buy a product because others don’t have it or can’t afford it. They buy it because of the way it makes them feel–special and unique.
Despite negative reports, there is a large luxury consumer base to tap into. Luxury home marketing can help. Today’s discerning consumers need to feel a connection with their luxury brands. The most important aspect of marketing to today’s luxury consumers is to keep their emotions at the forefront of all initiatives to remain a presence within the competitive luxury marketplace.